By Hayley Ferguson

Federal budget provides first time home buying incentives

Mar 20, 2019 | 5:34 PM

MEDICINE HAT, AB — If you can’t afford to buy your first home, the Canadian government may soon kick in and help.
It was announced as part of the 2019 federal budget that prospective buyers who have the minimum down payment for a home can now apply to finance between five and 10 per cent of their mortgage.

“I think it’s something that buyers, especially first time buyers should take advantage of because what it will do is bring down the price of your mortgage and that would help in day to day management and making it more, mortgage easy.” realtor Zain Naqvi said.

But not everybody thinks this is a great idea for first time buyers. MaxWell Team Realty owner and Realtor Jennifer Boyle feels that it is just increasing debt rather than building equity.

“It’s prolonging the inevitable and we don’t know enough about the terms of repayment to comment fully but as its written now, I would say really the only thing happening right now is they are increasing the amount of debt your enduring, that’s going to potentially create more bad debt.” She said. “People can’t save for a down payment. I think if this was a grant, we’d be having a whole other conversation.”

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Another concern is if the Crown Corporation, Canada Mortgage and Housing Corporation, will be the only company seeing the benefits.

“Some of the questions we’ve been having for CMHC is if they will they be providing to Genworth and Canada Guaranty insured loans as well. Those questions do need to be answered. If they are only providing it for CMHC insured mortgages, it’s going to make a bit of a monopoly for them.” said mortgage broker Jayne Halladay.

The incentive will be available in September.